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Danger Will Robinson. This is a chart of the US overnight Repo Rate. It should scare you.

 
Anonymous Coward
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08/16/2022 11:28 AM
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Re: Danger Will Robinson. This is a chart of the US overnight Repo Rate. It should scare you.
"It's pathetic that corporate financial media refuses to cover the daily RRP award (plus interest!) Fed handouts to Wall Street on $2+TN. Who needs QE when you can just hand billions to the banksters for nothing with zero questions or pushback."


Anonymous Coward
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08/16/2022 11:30 AM
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Re: Danger Will Robinson. This is a chart of the US overnight Repo Rate. It should scare you.
Overnight Repo Rate Chart


[link to tradingeconomics.com (secure)]
 Quoting: CaptainMorgan


If you look at the 25Y summary on your graph, it seems to be going parabolic.
 Quoting: Anonymous Coward 80121134


Something is definitely getting out of hand.
PatrikC325

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08/16/2022 11:38 AM
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Re: Danger Will Robinson. This is a chart of the US overnight Repo Rate. It should scare you.
The "Big Short" Michael Burry Liquidates Entire Portfolio, Holds Just One Stock At End Of Q2

[link to www.zerohedge.com (secure)]
Anubis

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08/16/2022 12:07 PM
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Re: Danger Will Robinson. This is a chart of the US overnight Repo Rate. It should scare you.
have you tried looking at the rate over 25 years though?

not so scary.

https://imgur.com/a/W3kARiv
Anonymous Coward
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08/16/2022 12:11 PM
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Re: Danger Will Robinson. This is a chart of the US overnight Repo Rate. It should scare you.
Why the reverse repo rate is so high is likely multi faceted. Only the fed would know who the counter parties are but to discuss we need to know what a reverse repo is.
Boiled down its short term nightly repurchase of cash sitting on big bank balance sheets. Big banks can only hold certain amounts due to FDIC regs, plus they generally want to invest that cash in other revenue generating endeavors.
My theory is high net worth individuals are sitting on piles of cash instead of equities. This is likely due to extreme market uncertainty. At the same time big banks have the same thought. The profit to be made off of short term interbank lending is not worth the risk. This is where the fed steps in. They are the lender of last resort on short term money in order to keep the market liquid.
The questions everyone should be asking, why is the big smart money not in the equities market? Why are banks more comfortable with the fed than potential higher returns elsewhere? Should I be thinking the same thing?
Anonymous Coward
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08/16/2022 12:22 PM
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Re: Danger Will Robinson. This is a chart of the US overnight Repo Rate. It should scare you.
Well the last time this happened, I believe it was fall '19, 'covid' sprang to the forefront and we all no what happened next. ZH spotted this in either September or early October and this is never a good thing and is a sure indication of another financial crisis on deck.

Good luck everyonw!
Anonymous Coward
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08/16/2022 12:27 PM
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Re: Danger Will Robinson. This is a chart of the US overnight Repo Rate. It should scare you.
Why the reverse repo rate is so high is likely multi faceted. Only the fed would know who the counter parties are but to discuss we need to know what a reverse repo is.
Boiled down its short term nightly repurchase of cash sitting on big bank balance sheets. Big banks can only hold certain amounts due to FDIC regs, plus they generally want to invest that cash in other revenue generating endeavors.
My theory is high net worth individuals are sitting on piles of cash instead of equities. This is likely due to extreme market uncertainty. At the same time big banks have the same thought. The profit to be made off of short term interbank lending is not worth the risk. This is where the fed steps in. They are the lender of last resort on short term money in order to keep the market liquid.
The questions everyone should be asking, why is the big smart money not in the equities market? Why are banks more comfortable with the fed than potential higher returns elsewhere? Should I be thinking the same thing?
 Quoting: Anonymous Coward 72370644


look at it from a different angle;
$2+trillion kept out of circulation is $2+trillion _not_ contributing to inflation.
imagine the inflation if all that cash was sloshing around chasing after less and less product on store shelves?
Dukembg

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08/16/2022 12:31 PM
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Re: Danger Will Robinson. This is a chart of the US overnight Repo Rate. It should scare you.
The repo rate was more of a concern in 2019, let me know when we get back to those levels.
Prepare yourself for the coming power outage!!

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Anonymous Coward
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08/16/2022 12:31 PM
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Re: Danger Will Robinson. This is a chart of the US overnight Repo Rate. It should scare you.


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Anonymous Coward
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08/16/2022 12:34 PM
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Re: Danger Will Robinson. This is a chart of the US overnight Repo Rate. It should scare you.
expand your chart to then end of 2019 and you will see why the scamdemic and and trillions being pumped into system was necessary.


we already crashed in 2019.


we are in a liquidity crisis.


in a DEBT-BASED financial system money MUST be taken from the future to keep it going.


WE NEED ANOTHER BLACK SWAN BECAUSE IT ONLY GETS WORSE.



THE MIND FUCKING HAPPENING IN THIS WORLD IS UNPRECEDENTED!
Anonymous Coward
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08/16/2022 01:50 PM
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Re: Danger Will Robinson. This is a chart of the US overnight Repo Rate. It should scare you.
Overnight Repo Rate Chart


[link to tradingeconomics.com (secure)]
 Quoting: CaptainMorgan



If you look at the 25 year, and the Maximum, the line is going straight up now, like there's something seriously wrong happening today.

In the past it was always gradual, even with the horrible shit that happened with Bush and Obama.


If people need all that cash, it's probably to meet all their new financial needs (inflation).
sunwatcher

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08/16/2022 03:27 PM
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Re: Danger Will Robinson. This is a chart of the US overnight Repo Rate. It should scare you.
It's a liquidity problem. Soon banks won't trust other banks to repay, and then shit freezes up. It happened before, remember?
 Quoting: CaptainMorgan


The goal of raising rates is to end too much liquidity in the market. thus tampering inflation down to a reasonable level

The problem they are having Is democrats keep printing money to pay for wars for Israel

We are in serious shit..
 Quoting: Anonymous Coward 82851438


those graphs show that the sharp rise of repos begun much before the inflation surge
I'm becoming an expert in identifying bikes'n'boats thanks to GLP
Anonymous Coward
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08/16/2022 09:11 PM
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Re: Danger Will Robinson. This is a chart of the US overnight Repo Rate. It should scare you.
Bump
Anonymous Coward
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08/16/2022 09:12 PM
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Re: Danger Will Robinson. This is a chart of the US overnight Repo Rate. It should scare you.
Bump





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